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Global markets recovered some ground this week as fears over a US nuclear standoff with North Korea began to ease, but the FTSE 100 wasn't able to join in the party.

With today's 1% drop, the UK blue-chip index has now fallen back to last week's lows, sparked by the tensions between the two nuclear powers. Our Accumulator data table shows the index is the worst performer in pound terms in the week to yesterday, although it's worth noting the S&P 500 was hit harder, making it into the black only thanks to the dollar's rally.

That contrasts with the stronger recovery seen in Europe, with the German DAX 30 the best performing major global stock market this week, up 2.3% in pound terms.

European markets continue to outpace the US and the UK this year, with eurozone gross domestic product figures released this month underlining the region's recovery.

Growth of 0.6% in the second quarter was in line with preliminary estimates, and up from 0.5% in the first. That means the eurozone is growing at twice the pace of the UK, whose economy grew by just 0.2% in the first quarter of the year and 0.3% in the second.

More importantly for investors, however, that growth is being reflected in company earnings, with two-thirds of European companies reporting better-than-expected earnings in the first quarter, the strongest showing in 14 years.

Currency has also played a part, with the euro's strength amplifying gains from European markets for UK investors. That was the case again this week, with the euro rising against a pound weakened by a surprise stall in inflation.

The strength of the European currency could even ensure that easy money keeps sloshing around the region for a little bit longer. Minutes from the European Central Bank's latest meeting, released yesterday, showed policymakers' concern over the currency 'overshooting', which could put the brakes on an imminent tapering of its bond-buying quantitative easing programme.